The president of the fed, Jerome Powellsaid on Friday that the US economy would need a restrictive monetary policy “for some time” before inflation is under control, which sent Wall Street’s main indices down more than 3%.
Powell’s blunt and hawkish comments dashed hopes the central bank will resort to modest rate hikes. after the latest data suggested that price pressures were easing.
The tech company titles What Apple, Microsoft and Nvidia they have big decreases of up to almost 3%, affected by the rising yields on US Treasury bonds.
The two-year US Treasury bond yieldwhich is especially sensitive to interest rate expectations, briefly peaked at 15 yearswhile the yield curve that measures the difference between the debt at two and 10 years I know kept heavily invested. Many specialists consider that a investment would be a reliable sign of an impending recession.
The CBOE Volatility Indexthe Wall Street fear gauge, hit a seven-week high of 27.03 points.
The energy values rose 0.7%Following a rise of more than 1% in oil pricessince the Potential OPEC+ production cuts and the conflict in Libya helped offset the strength of the US dollar.
Source: Ambito
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